The UK telecom regulator Ofcom has received a green signal to hold an auction for the 2.6GHz and 800MHz broadband spectrum.

The auction will able phone companies to offer a better improved version of mobile based broadband services to a wider range of users.

Ed Vaizey, honorable Minister for Communications, via a statement explained that Ofcom will need to launch a detailed market analysis for 3G and 4G mobile broadband technology and the possibility of new entities incoming in the market.

Vaizey, added: "Under our plans, our mobile industry will have access to the 21st Century infrastructure it needs to give UK consumers the latest technologies and even better coverage for broadband on their mobile phones."

This however in regard with the new government motives will offer 3G licensing an indefinite option in lieu of making the investment more satisfying and thus profiting from the revenue that comes from the license trading.

It was also stated that government is looking out to offer the 2G spectrum at 900MHz and 1800MHz, in order to run the 3G networks on it.